S&P Global Platts, has announced that it is deploying a proprietary, secure blockchain network to allow market participants to submit weekly inventory oil storage data to Fujairah Oil Industry Zone (FOIZ) and the regulator, FEDCom.
FOIZ hosts the Middle East’s largest commercial storage capacity for refined oil products. As exclusive publisher of FOIZ’s weekly oil inventory numbers, S&P Global Platts continues to partner with the Emirate in its journey to becoming a global trading hub.
In collaboration with FOIZ, FEDCom and the 11 terminal operators that use the flagship Middle Eastern facility, S&P Global Platts has developed a full scale commercial deployment of the Blockchain distributed ledger technology. This offers FOIZ and its port operators security, together with ease of use, and a full audit trail to collate weekly inventory oil products storage data.
The new technology improves the manual and unstructured process by which the terminal operators communicate their weekly inventory numbers to FEDCom. The new solution also alleviates the need for FEDCom to undertake manual validation and aggregation of each terminal operator’s numbers, reducing the scope for human error.
This project will deliver tangible benefits in recognition of an industry need for a more efficient and secure submissions process. These include:
- Reducing the burden of manual data management for both FEDCom and the terminal operators.
- Dynamic display of reported numbers at an aggregated or individual operator level.
- Improving reporting quality by automatically validating numbers with predefined criteria and aggregating numbers, avoiding human input.
- Simplifying the certification of asset ownership.
- Improving security of data transmission and storage.
As in the current process, FEDCom will have sole access to all individual terminal operator numbers and will submit only the approved aggregated weekly numbers to S&P Global Platts for global distribution.
Built on the opensource Hyperledger Fabric framework, S&P Global Platts has developed a permissioned submissions environment where terminal operators submit data to FEDCom through smart contracts on individual private channels. FEDCom in turn runs a second smart contract, with an automatic command to calculate and submit data to S&P Global Platts on a public channel. This provides additional security and convenience for terminal operators.